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| Amazon plans to open discount stores for unsold items |
Bloomberg reports that Amazon is considering opening discount stores to sell unsold electronics and home gadgets at deep discounts. This can be an important addition to the company's growing portfolio of traditional web sites.
Based on this information, it is assumed that the discount tool has unsold inventory in Amazon warehouse.
The company plans to open permanent stores as well as temporary locations in malls or parking lots.
Plans were discussed last year, but the pandemic and a new Amazon Fresh collection have forced many employees to focus on day-to-day operations.
The plan is Amazon's way to clean up warehouses and clear inventory without hitting prices. At the same time, it maintains prices and enables customers to get products at low cost.
Amazon has built massive stores in recent years, starting with the number of bookstores that opened in high-end malls in Seattle in 2015.
And Amazon Go also opened in 2018, and it's a small store without cashiers that uses cameras and other sensors to track purchases.
There's also four-star Amazon, which is a marketplace for electronics, home gadgets, and toys that sells a mix of high-quality, best-selling products.
Food company Amazon Fresh started reopening its stores last year and is constantly adding new locations.
According to data from its website, Amazon now operates 96 physical stores and 7 large malls under its own brand.
Whole Foods Market supermarket company was acquired in 2017 and has more than 500 grocery stores.
The proposed new store inventory might be similar to Amazon's 4-star stock, and focus on smaller items that take up less space.
Opening discount stores is the retailer's traditional way to avoid decades of slow merchandise sales.
Amazon sells inventory online at a discount through a program called Amazon Outlets. Returned and used items are sold on a separate page called "Amazon Warehouse".
As the business grows, supplier managers are being urged to negotiate with suppliers over the right to return unsold Amazon inventory to them.
"We have had intense negotiations and the goal is always to recover the assets," Faisal Masoud (Faisal Masoud) said. Faisal Masoud (Faisal Masoud).
Despite these efforts, the company still has many unsold products.